S&P rates Leggett notes BBB+

Standard & Poor's said it assigned a BBB+ rating to Leggett & Platt Inc.'s proposed $300 million senior unsecured notes due 2022.

The proceeds will be used to repay outstanding commercial paper and for general corporate purposes, including acquisitions and share repurchase.

The proposed new notes contain a change-of-control provision.

The rating reflects the company's satisfactory business profile and intermediate financial risk profile, S&P said.

The company participates in fragmented and price competitive markets, the agency said, but its scale, highly automated production lines, vertical integration into steel production, good distribution capabilities and comprehensive product portfolio all offer competitive advantages.

About two-thirds of Leggett's demand is tied to consumer discretionary spending, which is expected to remain relatively soft over the next couple of years, S&P said.

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